Tag: retail park

Lar España Sells 2 Out-of-Town Stores in Pamplona to AEW for €11.5M

3 August 2018 – Eje Prime

Lar España is continuing its selling spree. The Spanish Socimi has divested two out-of-town stores in the Parque Galaria Retail Park in Pamplona for €11.5 million. The buyer is the company Fructiregions Europe, owned by the fund AEW, which has acquired a gross leasable area (GLA) of 4,108 m2, according to a statement filed by Lar with Spain’s National Securities and Exchange Commission (CNMV).

With this operation, the Socimi is strengthening its divestment and asset rotation plan, which it currently has underway and which has allowed it to raise up to €276.5 million to “focus its efforts on strategic commercial assets”, according to explanations from the company.

For the assets sold in Pamplona, Lar España has managed to obtain profits of 37% with respect to the €8.4 million that it paid for them in July 2015. In total, the two out-of-town stores occupy a gross leasable area (GLA) of 4,108 m2.

As well as divesting its non-strategic assets, Lar España has launched a three-year plan that includes the purchase of strategic commercial assets, such as the deal it carried out recently with the Rivas Futura Retail Park (Madrid), which it acquired for €62 million, and the Abadía Shopping Arcade (Toledo), which it purchased for €14 million.

In total, the Socimi has funding to invest €247 million in commercial developments. Examples include Palmas Altas in Sevilla, which will open its doors in 2019, and for whose construction the company has raised almost €100 million in bank financing; and Vidanova Parc, in Sagunto (Valencia), which recently debuted its first phase. Moreover, Lar España is going to spend €49 million on the renovation of retail assets that it holds in its portfolio.

After divesting its logistics portfolio a few weeks ago, for which the fund Blackstone paid €120 million, Lar España now has 18 real estate assets in its portfolio worth €1,401.5 million, of which €1,136.5 million correspond to shopping centres, equivalent to 81% of the total. 6% of the portfolio comprises office buildings, worth €85 million, and the remaining 13% belongs to the residential market, where the company has €180 million in developments under construction.

Original story: Eje Prime

Translation: Carmel Drake

Lar Spends €6M on Renovation of Megapark Barakaldo Shopping Centre

10 April 2018 – Eje Prime

Lar is giving one of its assets a makeover. The Socimi owned by the Lar España group has started work on the complete renovation of the Megapark Barakaldo shopping centre, for the first time since its construction in 2004, which will involve an investment of €6 million, according to a statement issued by the group.

The shopping centre, which is owned by Lar España Real Estate Socimi, has been managed by Neinver since 2016. Neinver, which is directing the renovation work, is one of the leaders in the development and management of outlet centres in Spain and the second largest operator in Europe.

The renovation of Megapark is going to be carried out in two phases. Firstly, work will be undertaken in the retail space; this has already begun, without affecting the daily activity of the centre, and is due to be completed in November 2018. Subsequently, work will begin on the leisure area to modernise and unify its image with the rest of the park.

“During this first phase, the renovation of Megapark Barakaldo’s retail area will be reflected primarily in a more current image, which is going to be accompanied by the renovation of all of the façades, outdoor spaces and common areas”, explain sources at the group. For this, an urbanisation plan has been developed, which includes introducing urban design furniture and children’s areas.

The general remodelling of the centre is also being accompanied by the renovation of some of the retail stores such as those of Mediamarkt, Kiabi, Merkal and Forum, as well as the expansion of the Conforama store by 1,200 m2 to reach 6,200 m2.

Megapark Barakaldo is located fifteen minutes from the centre of Bilbao and is the only retail and leisure area of its kind in a 400 km radius. In 2017, it received more than 10 million visitors and it has a surface area of 128,000 m2.

Original story: Eje Prime

Translation: Carmel Drake

Lar España Sells Retail Assets to French Fund Pierre Plus for €33M

13 March 2018 – Expansión

The Socimi Lar España has sold some commercial assets to the French investment fund Pierre Plus SCPI for €33.2 million. Specifically, the firm has sold two out-of-town stores in the Nuevo Alisal retail park in Santander (pictured above) and a commercial building in Villaverde (Madrid).

Original story: Expansión

Translation: Carmel Drake

Lar España Buys Rivas Futura Shopping Centre for €62M

6 February 2018 – Expansión

The Socimi in which Pimco holds a stake has purchased the Rivas Futura shopping complex, in the Madrilenian town of the same name, for €62 million.

Lar España has completed its first investment of 2018. The Socimi, whose largest shareholder is the fund manager Pimco, has completed the purchase of the Rivas Futura shopping complex, located in the Madrilenian town of Rivas.

Inaugurated in 2016, this complex was promoted by the real estate firm Avantis, and became a reference in Madrid, with a surface area spanning more than 55,000 m2 and first-class tenants such as Media Markt, Conforama and Toys R Us. Next to the retail park, the same real estate firm constructed a large office complex and a shopping centre called H2Ocio. Recently, that shopping centre also changed hands, with the manager CBRE Global Investors acquiring 70% of the property.

In 2008, Avantis’ liquidity problems meant that it had to find a new owner for the complex. The real estate subsidiary of Axa spent €81 million to buy the centre at that time. Years later, the fund Lone Star was awarded the park as part of Project Octopus, formed by loans from the German bank Eurohypo.

Now, the Socimi managed by the real estate group Lar has become its new owner, after paying €61.6 million to the most recent owner: Credit Suisse.

With this new investment, Lar España has become the largest operator of retail parks in Spain, with more than 150,000 m2 in its portfolio. Its flagship assets include the Megapark complex in Barakaldo, where the Socimi owns both the Megapark shopping centre and the factory outlet (acquired for €170 million), as well as the leisure area; that operation was closed at the end of October.

This purchase also represents the first acquisition of a commercial asset by the Socimi in Madrid, where it already owns a luxury housing development, Lagasca 99, as well as two office buildings. At the end of last year, Lar España put its office portfolio, comprising four assets and worth €170 million, up for sale. Since then, it has sold two of the assets, both located in Madrid and both sold to the same buyer: the real estate firm Colonial.

During the first nine months of 2017, Lar España generated profits of €72.2 million, up by 55% compared to a year earlier, after earning €57.2 million, up by 36%.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Terrassa Plaça Retail Park Will Open On 3 November

27 October 2017 – Press Release

Terrassa has a new retail park, in the form of Terrassa Plaça. With a gross leasable area (GLA) of 30,535 m2, the new complex will be officially inaugurated next Friday 3 November. The event will be attended by authorities from the Generalitat de Cataluña, the Town Hall of Terrassa and representatives of the centre’s operators and Citygrove, the property developer.

The new centre is backed by an investment amounting to €30 million, the creation of more than 500 jobs and will house an extensive and varied retail offer: from the distribution of consumer goods and construction materials to fashion and restaurants. Citygrove’s aim with Terrassa Plaça is to cover the growing demand from the local population for these types of services. An entire commercial offer centralised in a single space.

Famous brands

This new project will open its doors with the following brands in situ: Bricomart, Mercadona, Globomoda, Altafit Gym Club, Gifi, Kiwoko, Barimueble, Sprinter, La Tagliatella, Pause&Play, Maxcolchón, Drim and Petrocat. All of them are looking to take an important step in their expansion here and to establish themselves as iconic labels in the minds of consumers. That is especially true in the case of the Italian company Globomoda, which has chosen to open its first store in Cataluña in Terrassa Plaça.

The complex is located on a plot measuring 56,000 m2 delimited by Avenida del Vallès, Calle Navarra, Avenida de las Naciones and Calle Cantabria. Its construction has allowed for improvements to the transport network in the area, with the creation of a pedestrian crossing on Calle Cantabria (…). In addition, the retail park will have an electric vehicle charging station, plus 1,000 parking spaces for cars and 70 for bikes, as well as a new bus route. Within the next few days, a new bike path will be opened between the city centre and the retail park.

Terrassa Plaça is the city’s new commercial offer and represents one of the most ambitious projects from Citygrove, the Anglo-Saxon property developer who has shaped this project. A key player in the real estate sector in Europe, with offices in the UK and Germany, Citygrove backed Terrassa from day one with the aim of turning it into a commercial benchmark project for the city, which was demanding this type of facility.

Original story: Press Release

Translation: Carmel Drake

Flagship Stores Become The Bastion Of Large Retailers

19 October 2017 – Expansión

The unstoppable rise of e-commerce, the tsunami of digitalisation and the new buying habits of consumers have revolutionised the retail sector forcing operators to adapt to the new times to stay competitive.

The e-commerce sector is now turning over €24,000 million per annum in Spain, with a growth rate of 20% p.a. In this context, consumers are increasingly using the internet to manage their purchases, resolve queries and optimise their visits to stores. As such, they are visiting stores less frequently but they are spending more time there when they do go, according to a report from CBRE about the retail sector.

In this context, large international brands are backing the flagship store model as a gateway into Spain; and operators that have traditionally based themselves on the outskirts of cities are now moving into flagship stores in the centre. By way of example, the French firm Kiabi opened a store on Paseo de Gràcia a few months ago. In the same way, operators who have traditionally had stores in retail parks are now making space for themselves in the city centre, such as Media Markt, which opened two stores in the centre of Barcelona in 2016. Before the summer, the electronics firm also opened its new its flagship store in Plaza del Carmen, Madrid, just a stone’s throw from Gran Vía.

Ikea is joining this trend too, with a store on Calle Serrano; as is Leroy Merlin, which is planning to open a shop on Calle Fontanella, next to Plaza de Catalunya in Barcelona

Interest in Spain

“Physical stores are still the favourite channel for consumers, but it is harder to get people out of the house. To attract them, retailers are opening large flagship stores focused on the shopping experience and expanding the range of services, supported by new technologies that allow marketing strategies to be customised”, explains Gonzalo Senra, National Director of Retail at CBRE España (…).

Given the interest from large brands in Spain and encouraged by the upwards cycle of the economy and the improvement in consumption, many overseas institutional investors have decided to back the Spanish market. For example, the US investor Hines has purchased four important prime premises in Madrid and Barcelona in the last year.

These types of investors are the main buyers of flagship stores in well-located premises, involving investment volumes of more than €20 million. Moreover, sources at the consultancy firm have noted a change in the trend in this market with the entry of several insurance companies bidding for large prime assets.

By contrast, the market for smaller acquisitions is dominated by Spanish private investors and family offices – they tend to be particularly interested in assets worth less than €10 million.

Overall, investment in high street premises amounted to €800 million in 2016. The rate of investment continued during the first half of this year, with an investment volume of €515 million, according to data from the consultancy firm (…).

The high level of demand has accentuated the typical shortage of well-positioned products and resulted in a reduction in returns. According to the report, the downward trend in yields continued in 2017 to reach 3.25% in some cases for the most prime products in Madrid and Barcelona (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Kronos To Build A New Shopping Centre In Galicia For €35M

28 September 2017 – La Región

Kronos, a company that develops and manages both residential and commercial assets and that has projects all over Spain, is going to embark on an important operation on the San Cibrao das Viñas industrial estate (in Ourense). The firm is going to build a large retail park on a plot of land measuring 40,000 m2, of which 18,100 m2 will constitute the net sales area. The park will be located on the site of the former Muebles Calvo factory, on the main road of the industrial estate, next to the access roundabout, by the Reboredo exit. The property’s façade overlooks the road, along which more than 20,000 vehicles travel per day (…).

Kronos has been looking for a site for this retail park for a year and a half “in areas where the market is interesting, and Ourense undoubtedly appealed to us for that reason”, says Manuel Holgado, Partner at the property developer. In addition to the 18,100 m2 of sales space, the retail park will have 750 parking spaces and the total investment is expected to amount to around €34.5 million. The company calculates that 250 direct jobs will be created as a result of the operation, as well as 96 indirect roles.

The largest store will be occupied by a DIY company

Enrique Feduchy, Partner at Kronos, says that the names of the commercial brands that are going to move into the park cannot be confirmed yet “because we are still holding negotiations”, but he did reveal that the largest retail space, around 8,000 m2, will be reserved for a DIY company.

In addition, there will be a food space, which will occupy 2,000 m2; another space measuring 1,500 m2 for domestic appliances; and the rest of the stores will house retail, sportswear, household goods, textiles and leisure goods, according to the first version of the plans “which may be subject to changes”, according to the company.

Feduchy specifies that the model that they are going to introduce in San Cibrao “does not exist in Ourense, because it is going to be a retail park with specialist stores, serving a sector of the public that will travel from Vigo, Santiago and A Coruña”. According to the developer’s plans, the first phase of the construction work will be undertaken during the first half of next year (…) and the park is expected to be open by the end of 2019 (…).

In terms of other opportunities, Manuel Holgado says that “we are looking at other options in Galicia for residential and commercial operations, but we have not signed anything yet” (…).

Original story: La Región

Translation: Carmel Drake

Catella: RE Inv’t Rose By 60% During First 8 Months To €7,061M

25 September 2017 – Expansión

The Spanish real estate market is still a magnet for investment at the global level. In this way, during the 8 months to August, investment in tertiary real estate assets (in other words, non-residential properties) rose to €7,061 million. That volume is 62% higher than the figure registered during the same period in 2016, according to data from the consultancy firm Catella (…).

By type of properties, commercial assets accounted for 45% of the total investment, with a volume of more than €3,200 million, up by 52% compared to the first eight months of 2016. In fact, that figure already exceeds the amount recorded for last year as a whole and is very close to the record investment made in 2007, when commercial assets worth more than €3,590 million were sold, according to sources at the consultancy firm.

Of that amount, investment in shopping centres accounted for 60% of total retail investment, amounting to €1,929 million. The figure is explained by the completion of major operations, such as the purchase of Xanadú, in Arroyomolinos (Madrid), on which Intu Properties spent €530 million; and the operation involving Nueva Condomina, in Murcia, which Klépierre purchased for €233 million.

Interest

Large assets were not the only retail assets to spark interest: high-street premises were also on investors’ radars. As such, €711 million was spent on that type of property between January and August, with highlights including operations such as the purchase of Preciados 9, the future flagship Pull & Bear store in the centre of Madrid, by Generali for €98 million. Meanwhile, investors spent another €516 million on retail parks and supermarkets, with the operation involving a portfolio of nine retail parks leading the way – the South African investor Vukile spent €193 million on that purchase.

In the case of offices, investment increased by 46% to reach €1,512 million. “The Boston portfolio – comprising 14 office buildings located in Barcelona, Madrid and Valencia – owned by BBVA and acquired by Oaktree for €180 million has been the most important transaction so far this year. In Madrid, the most significant transaction saw the acquisition of the Manoteras business park by Tristan Capital (€103 million), whilst, in Barcelona, the most high-profile deal has been the purchase of Torre Agbar by Merlin Properties (€142 million”, say sources at Catella.

During the first 8 months of 2017, hotel purchases rose by 25% to reach €1,760 million, thanks to operations such as the one involving Edificio España, for €272 million, as well as the purchase starring the international fund London & Regional (which acquired four hotels located on the coast and islands for €240 million), as well as others involving Starwood and KKR.

Moreover, the logistics sector has not been left behind in terms of the increase in investment. Between January and August, that segment saw investment grow by 31% to reach €575 million. (…). In this area, the most significant operation has been the sale of GreenOak’s portfolio to P3 Logistics Park for €243 million.

Whilst retail assets were the star product by type of property, international funds continued to be the undisputed stars in terms of buyer profile.

Between January and August, funds accounted for 42% of the total volume invested; whilst real estate companies represented 28% of the total (…). Meanwhile, the Socimis, who were the most active investors in 2014 and 2015, have seen their share of the cake decrease to 11% so far this year.

“On the other hand, core investors have returned to the market, with the acquisition of prime properties located in Madrid and Barcelona. Insurance companies, family offices and other institutional investors have purchased assets such as offices and retail premises in Madrid, with yields of around 3%”, said Carlos López, Partner at Catella.

Year-end

“…We expect 2017 to be a record-breaking year, with an investment volume of around €10,000 million, compared to the figures of more than €8,500 million in tertiary investment in 2016”, says López (…).

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Large Retailers Compete For City Centre Premises

14 September 2017 – El País

Retailers that typically occupy out-of-town stores only, brands such Ikea, Decathlon, Media Markt, Leroy Merlin and Kiabi have done an about turn with their strategies. Now, they want to take their products to the heart of cities to reach clients who are not visiting them on the outskirts. They are occupying the few large retail premises that are available close to the major commercial thoroughfares of Madrid and Barcelona. They are not pushing up the rental prices of these properties yet; in fact, they are investing between €1 million and €5 million on renovation work. But they will.

The main retail areas in the centre of Madrid and Barcelona have new tenants. The so-called out-of-town retailers, which, until recently, could only be found in retail parks on the outskirts are undertaking a new urban strategy. They want to approach a new group of customers, those who want to avoid using their cars and it wants to lock them in. This week, Decathlon announced that it will open three stores in the heart of Madrid, where Leroy Merlin will also set up shop in 2018, following in the wake of Ikea (which inaugurated its store on c/Serrano in May), Kiabi (which has just done the same in Barcelona on Paseo de Gracia) and Media Markt, the first to arrive in the centre of both cities (as well as in Valencia).

The trend started two years ago in major European cities and comes in response to a move by the population towards the centre and to the fact that e-commerce is requiring companies to respond rapidly to their clients. That means being close to them, explains Robert Travers, Director at the real estate consultancy Cushman & Wakefield (…).

The strategy of these chains is to open stores on the main commercial thoroughfares of large cities in smaller spaces than those they occupy in the out-of-town retail parks, but of considerable dimensions given that they are in the centre. “They are not looking for prime locations, but rather premises very nearby, because they cannot afford the rents of operators such as Zara, Mango and H&M. Instead they pay around 30% less because their margins are smaller”, says Travers. They need streets with high footfall and premises measuring at least 1,000 m2 or 2,000 m2, with open-plan floors; such features are very few and far between in the best shopping areas.

For the time being, the arrival of these brands has not had any impact on rental prices, given that, according to Sergio Fernandes, the Director of Retail at the consultancy firm JLL, the availability of these kinds of properties on the main commercial thoroughfares is very limited and the operators that demand them are also very few. “Only the leaders of each sector are brave enough to make the move. For the time being, we are seeing only six or seven brands”, he says. Examples include Aki, Bricor, Verdecora, Sport Zone and Kiwoko Mundo Animal. Nevertheless, “they are managing to make use of certain properties that would otherwise go unoccupied as they are not in the right locations for the fashion brands”, says David Barragán, Director of Retail at the real estate firm Aguirre Newman (…).

The search is not easy, according to estate agents and retail chains (…). The negotiations are intense and prolonged because the premises need renovating and the brands demand grace periods whilst the construction work takes place, which tenants typically pay. Rental contracts are being signed for periods of between seven and 20 years.

But it is worth it. The pilot store that the Swedish chain Ikea has opened in Madrid is performing better than expected. In fact, some of the new formulas that it offers have already been extended to its other stores (customisation of fabrics, dressers and doors). Nevertheless, Ikea is still assessing whether or not to open more central stores with this format, which combines sales and entertainment (…).

Original story: El País (by Claudio Álvarez)

Translation: Carmel Drake

Ikea Sells Former Store In Alcorcón To International Investor

5 April 2017 – Inmodiario

Ikea has completed the sale of a plot measuring 38,700 m2 in Parque Oeste Alcorcón (Madrid) to an international investor group. The plot houses a single property, with a constructed surface area of 22,500 m2, located in one of the most powerful retail parks in Spain. Previously, it housed the Swedish company’s first store in Madrid, inaugurated in 1996.

“This sale successfully completes the process to relocate our operations to a new store, also in Alcorcón, which is larger in terms of size and capacity. It also represents a boost to our financial situation and further strengthens the development of our activity in Spain. The current store, opened in June 2016, is the largest in the market in Madrid and has represented a significant innovation in terms of space, services and improving the purchasing experience”, said Ignacio Navarro, Head of Expansion at Ikea Ibérica.

Meanwhile, Yola Camacho, Partner in Capital Markets at Cushman & Wakefield España said: “This is a major operation for the retail park market, given its excellent location, in one of the best retail parks in Spain, and it shows the high degree of interest that exists for assets of this kind. In addition, through our advice and commercial knowledge, we have been able to help Ikea optimise the sale operation”.

Original story: Inmodiario

Translation: Carmel Drake